Why Rate Cut Isn't a Sure Thing

The market is convinced the Federal Reserve will cut interest rates tomorrow, but for the Fed itself, it is a closer call.

The behavior of financial markets implies near certainty by investors of a quarter-point cut in the Fed's key short-term interest rate. But for policy makers, the decision is between the quarter-point reduction and no cut at all. A half-point cut is unlikely to get serious consideration from Fed officials, though...